AUDITOR GENERAL

Hokitika Guardian, 18 November 1932, Page 3

AUDITOR GENERAL

VEAKENING FEARED OF PARLIAMENT’S CONTROL (Per Press Association — Copyright.) WELLINGTON, November 15. The weakening of Parliament’s control of expenditure which is threatened by the closing of separate accounts is commented on in the annhal repoi t o fthe Controller and Auditor-General, Colonel Campbell, presented in the Bouse to-day. The report points out that during the two years ended March 3'l S t, 1932, teii separate accounts have been closed. In view of the increasing' tendency uf governments, both general and locol, to undertake commercial activities, ontinues the report,, it is becoming increasingy necessary for the Government co publish commercial accounts, but such commercial accounts should be auxiliary to the public accounts kept in the usual form common to other governments, and should not be 'allowed in any way to displace such governmental accounts. One of the chief functions of governmental accounts is provide means for control by Parliament of the public expenditure. Such control can be fully effective only if applied before the expenditur, is made, and it is clear that commercial accounts, which in the nature of things cannot be prepared until some time after the close of the financial year, cannot be used to control expenditure made during ~th?,t year. Governmental accounts in the usual form, however, are'-.designed for the very purpose of .hiftkimg such control effective, for they-'Biow at any time during the yeaVthe amount of money: made available bv Parliament for each specific purpose, and also the amount of the appropriation by Parliament for the expenditure of money. The closing of separate accounts, says the report, tends to weaken Parliamentary control of the expenditure by rendering it difficult or impossible to obtain detailed information of’ he transactions relating to each separate undertaking, and at the same time tends to render the commercial accounts of . various departments and undertakings less accurate. The Cheviot estate account is quoted qs an example of these effects.